These clowns are beyond the wall (where they should stay).
All that forcing interest rates down will do is to build up future problems. The dollar is considered by foreigners to be sound enough to invest in. Should that change, the only way to get 'em back will be to raise interest rates.
That will be fun.
To think that anyone feels that political control of the economy is better than allowing the free market to do it.
Harry
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Karen wrote:
Ammo low, Fed eyes last bullet to lift economy
Federal Reserve's expected interest-rate cut this week may add modest stimulus but is not without risks.
By Ron Scherer | Staff writer of The Christian Science Monitor, June 23, 2003 edition
NEW YORK - For the past 2-1/2 years, the Federal Reserve has lowered interest rates to stimulate the economy. The result has been a virtual gully washer of money in the economy. But now, as the Fed contemplates yet a 13h cut, it has become much more difficult and complicated to pump up the economy by lowering short-term interest rates.
So, when the Fed meets Tuesday and Wednesday to review the economy and make a decision on interest-rate policy, it will have to consider why this rainstorm of cash hasn't done the job.
If business won't build new factories at these low interest rates, will even lower rates make any difference? And, as interest rates get closer to zero, Fed chairman Alan Greenspan will have to ponder if he needs to keep some ammo in his pouch in case he needs it later this summer.
"The Fed's decisions are becoming increasingly difficult," says Jon Blumenfeld, US Interest Rate Strategist at Commerzbank Securities in New York.
Despite the difficulties, Fed-watchers expect Alan Greenspan and his fellow bankers will reduce rates yet again - probably by a quarter of a percent. But, a half a point is not out of the question.
<http://www.csmonitor.com/2003/0623/p02s01-usec.html>http://www.csmonitor.com/2003/0623/p02s01-usec.html
**************************************************** Harry Pollard Henry George School of Social Science of Los Angeles Box 655 Tujunga CA 91042 Tel: (818) 352-4141 -- Fax: (818) 353-2242 http://home.attbi.com/~haledward ****************************************************
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